MedReleaf Corp. (TSX:LEAF) (OTC:MEDFF) (FRA:MEW) today announced that it has been added to the Solactive North American Marijuana Index as part of its quarterly re-balancing, and by extension the company will now be included in the Horizon Medical Marijuana Life Sciences ETF (TSX:HMMJ) (OTC:HMLSF).
Constituents of the index are listed on North American public equity markets with business activities that include pharmaceuticals, medical manufacturing, distribution, as well as other ancillary businesses to the cannabis industry. To be eligible for inclusion a stock must meet minimum asset and liquidity thresholds, and no single stock may exceed 10% of the weight of the index when re-balanced.
Being added to the Medical Marijuana ETF basket is great news for any company, as the fund currently has $139,151,724 CAD in assets under management as of the close on September 19th. This is equivalent to approximately $113,506,061.27 USD in AUM at current foreign exchange rates, making HMMJ as large of a thematic equity index fund as the US Global Jets ETF (NYSE:JETS), the iShares Global Clean Energy ETF (NASDAQ:ICLN), and the Guggenheim Shipping ETF (NYSE:SEA).
With MedReleaf's 4.07% weighting in the basket, this means that over $4.6 million USD worth of the ETF's AUM has been allocated towards this recent addition. Now in the top 10 holdings of HMMJ, MedReleaf joins other cannabis industry leaders like Canopy Growth Corp. (TSX:WEED), Aphria Inc. (TSX:APH), Aurora Cannabis Inc. (TSX:ACB), GW Pharmaceuticals Plc (NASDAQ:GWPH) and 22nd Century Group Inc. (NYSE:XXII).
"MedReleaf's addition to the North American Marijuana Index is a recognition of our position as one of the industry's largest and most respected cannabis producers. We have achieved this position through our relentless focus on serving our patients and we will continue to focus on driving growth and profitability in our business to create long-term shareholder value," said Neil Closner, CEO of MedReleaf. "Our inclusion in Horizon's Medical Marijuana Life Sciences ETF provides another avenue for investors to participate in our growth."
HMMJ is the world's first exchange-traded fund to offer direct exposure to the performance of a basket of North American publicly listed companies with significant business activities in the cannabis industry. The fund seeks to replicate, to the extent possible, the performance of the Index, net of expenses., however it is important to note that HMMJ may not hold all of the constituent names in the Index. With that said, MedReleaf is certainly one of the ones that it holds.
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